OPERA SOLUTIONS CAPABILITIES. ACH and Wire Fraud: advanced anomaly detection to find and stop costly attacks

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Brandon Lawson
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1 OPERA SOLUTIONS CAPABILITIES ACH and Wire Fraud: advanced anomaly detection to find and stop costly attacks

2 2 The information you need to fight fraud does exist You just have to know it when you see it It s simple. As perpetrators of ACH and wire transfer frauds constantly try to keep one step ahead of efforts to identify and stop their attacks, Opera Solutions stays one step ahead of them. Simple, that is, but not easy. Traditionally, supervised neural network models have been successful at fraud detection. But they require information specifically, sufficient historical data and tags indicating known fraudulent transactions that isn t always available. That s why Opera focuses on what is always available employing highly sophisticated anomaly detection techniques that identify unusual activities through the most advanced adaptive models to defend against current, and future, attacks.

Simple, that is, but not easy. Traditionally, supervised neural network models have been successful at fraud detection.

3 3 The company they keep provides an edge against the troubles you may face Opera s anomaly detection models analyze user and peer group behavior, distinguishing normal patterns from ones that may indicate fraud. They learn the normal behavior patterns of legitimate ACH and wire transfer requests, and activity that deviates sufficiently from the norm is scored to assess risk. As transactions occur, Opera s models continually adapt to, and redefine as necessary, what constitutes normal behavior, resulting in highly accurate threat assessments with a minimum of false positives. They analyze full transaction histories and include both financial and non-financial data, revealing hidden patterns, correlations, and segmentations, and continually update the behavior baseline upon which all risk comparisons are driven. In addition, over time a consortium approach that includes input from other parties can be employed to increase the data, and confirm fraud events used to train the model, which typically improves fraud detection performance.

As transactions occur, Opera s models continually adapt to, and redefine as necessary, what constitutes normal behavior, resulting in highly accurate threat assessments with a minimum of false

4 4 We ve thoroughly mastered the ins and outs of fraud prevention Opera s anomaly detection system evaluates all incoming data regarding a transaction, including information on the log-in and any prior failed log-in attempts, as well as all outgoing data regarding the payee and the transaction amount. The model takes into account all different types of attacks, and learns to identify and respond to even the most abstract ones. Opera also uses Ensemble techniques to knit together the results from different analytic methodologies. That typically results in a better performing model, since it draws on each individual technique s unique strengths. By understanding every way an account can become compromised, even the faintest signals can be detected in time. Every day Opera s Anomaly Detection System monitors both payor accounts at one institution and payee accounts at others, distinguishes unknown payee accounts from typical biller accounts, and monitors online banking access attempts. Payor Account Payee Account Opera Scoring Engine Historic Context ACH/ Wire Fraud Model Opera Data Connectors Payor bank s ACH or Wire transactions ACH/ Wire Fraud Score Online Banking access attempt Account Masterfile Opera uses traditional modeling techniques in innovative ways and combinations to reveal characteristics and expressions of individuals in a whole new, more valuable way. It s a perfect illustration of how we provide Big Data analytics as an ongoing service to blue chip clients across the globe.

The model takes into account all different types of attacks, and learns to identify and respond to even the most abstract ones.

5 5 Make our expertise your expertise Opera s industry leading fraud solutions are real-time answers to real-world problems. What they are not is black boxes. Since the most powerful approach is combining machine intelligence with human insight, our solutions always explain their output in clear English and readily comprehensible reason codes. We create easy-to-interact-with visualization tools that allow you to see what s important, and to know exactly what to do about it. Our scientists have developed successful anomaly detection models for leading companies all over the world. We d like to do the same for you. For more information, or to contact us, click here.

comprehensible reason codes. We create easy-to-interact-with visualization tools that allow you to see what s important, and to know exactly what to do about it.

6 ABOUT OPERA SOLUTIONS, LLC: Opera Solutions drives productivity for enterprise and government through advanced Big Data predictive analytics that create machine-generated directed actions to significantly improve front-line decisions. Its Signal Hub technologies provide organizations an enterprise-wide capability to continually extract and put to use newly available predictive information from outside their firewalls, creating a revolutionary pathway to productivity, profit, and advantage. With 230+ data scientists among its 700 employees, the company is an internationally recognized leader in machine learning. It serves enterprises in Financial Services, Healthcare, Government, Supply Chain, Marketing, and other sectors, with offices in North America, Europe, India, and China. New York Jersey City Boston Washington, DC San Diego London Shanghai New Delhi

Its Signal Hub technologies provide organizations an enterprise-wide capability to continually extract and put to use newly available predictive information from outside their firewalls, creating a

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